JUDGMENT

Dr.D.P. CHOUDHURY, J. - Challenge has been made to the illegal action of the opposite parties provisionally attaching the bank accounts and fixed deposits of the petitioner under Section 281B of the Income Tax Act, 1961 (hereinafter called “The Act”).

FACTS

2. The unshorn details of the case of the petitioner is that petitioner is the sole proprietor of his Firm operating in the name of M/s. National Enterprises having its head office at Barbil, in the district of Keonjhar. Petitioner has been carrying on business of mining of iron and manganese ore since more than thirty five years since 1980. It is stated that petitioner has been regularly filing returns of income with the Income Tax Department (hereinafter called “IT Department”) having Permanent Account Number. He has been filing the return for six years right from 2009-2010 till 2014-2015. Petitioner asserted that he has been maintaining the proper cash books, ledgers, purchase and sales registers. For maintaining bank accounts petitioner has private banks such as HDFC Bank, ICICI Bank and Axis Bank. It is alleged, inter alia, that suddenly the opposite parties made search and seizure operation on 19.2.2015 of the business and residential premises of the petitioner under Section 132 of the Act. During search operation the opposite parties found cash of Rs. 13,13,800/- in the premises. In course of search operation prohibitory orders under Section 132(3) of the Act were issued in respect of all the bank accounts and fixed deposits of the petitioner and s such all bank accounts and fixed deposits were frozen. Being satisfied with the nature of the accounts the prohibitory orders were lifted by the I.T. Department on 9.3.2015 and 7.7.2015. However, petitioner by voluntarily disclosing the additional taxable income of Rs. 30,02,98,416/- and paid the tax of Rs. 10,20,71,432/- on 25.5.2015 with HDFC Bank Limited by way of advance tax.

3. It is stated that during course of search and seizure under Section 132 of the Act, the assessment proceeding under Section 153A of the Act for the assessment years 2009-2010 to 2014-2015 were initiated by the opposite party No. 1 vide notice dated 10.8.2015 and it was served on 12.8.2015. the petitioner was asked to prepare and file true and correct return of the total income for the assessment years 2009-2010 to 2014-2015 within fifteen days of receipt of notice. While the petitioner was granted fifteen days time from 12.8.2015 to file the return, opposite party No. 1 illegally and arbitrarily attached provisionally all the bank accounts and fixed deposits of petitioner in exercise of power conferred under Section 281B of the Act vide impugned order dated 12.8.2015. Accordingly, order was issued to the banks and such order remained in force for six months.

4. It is stated that on 17.8.2015,18.8.2015 and 19.8.2015 the petitioner filed representations with the opposite parties stating that no incriminating material or document has been seized at the time of search and seizure and petitioner has never defaulted for payment of any tax nor there is any outstanding demand against him. Petitioner also made submission before opposite party No. 1 that due to provisional attachment, his business has been affected as he is not able to pay salaries of the employees and labourers and other sundry expenditures. He requested opposite party No. 1 to lift the provisional attachment. But opposite party No. 1 instead of granting any relief suggested for entire balance available in the attached bank accounts should be transferred to fixed deposit account so that the fixed deposit accounts can be issued with fresh attachment. On 20.8.2015 two accounts of the petitioner were released from the attachment but the provisional attachment continued over eleven bank accounts and nineteen fixed deposits of the petitioner which reflect an aggregate balanc